How to Promote China’s Environmental Goods … Tao... · Air pollution from fossil energy sources...
Transcript of How to Promote China’s Environmental Goods … Tao... · Air pollution from fossil energy sources...
How to Promote China’s Environmental
Goods Trade and Investment
Dr. HU Tao World Resources Institute
WWC, June 10, 2013
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Outline Dimension 1: Redefining Environmental
goods and industry Dimension 2: Classifying environmental
goods and investment policies Dimension 3: Regulating China’s OFDI
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Dimension 1: Redefining Environmental goods and industry
What does the environment mean? Deepen our thinking and expand
from the common environment towards Micro level to indoor environment Macro level to global environment
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Spectrum of the environment
The conventional Environment
Indoor environment
Outdoor environment
Micro Macro
Scale of environment
Regional environment
Local environment
National environment
Global environment
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Meanings of the Environment
Spectrum of the environment from micro to macro level Indoor environment Outdoor environment Local environment National environment Regional environment Global environment
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Environmental problems
Indoor environmental problems 70% of people’s lifetime are averagely spent
indoor where is the direct touch factor of human being
WHO reports most of health problems are related to indoor environmental quality
Indoor environmental goods and services can reduce, remove, recover and resolve the indoor environmental problems
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Environmental problems
Indoor environmental problems Air pollution from fossil energy sources for cooking and
heating SOx, NOx Particulates could reach 500mg/m3 in living room and1000mg/
m3 in kitchen Building materials for house building and decoration Furniture and decoration parts with VOC pollutants Smoking indoor Indoor water drinking and sewage Indoor trash Noise Radiation And others
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Environmental problems
Demand of environmental goods for indoor environment The booming housing is bringing more opportunities
Each year there are about 1.6-2 billion square meter new houses To ensure energy saving buildings, it is creating a lot of demand of
goods and services Landscape and horticulture design services Indoor pollution cleanup and prevention also create a lot of demand
for indoor goods and services, such as VOC free furniture Eco-labeled building materials
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Environmental problems
Outdoor, local and national environmental problems Air pollution Water pollution Solid wastes Biodiversity loss and ecosystem
degradation Noise Radiation
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Environmental problems
Demand of environmental goods for outdoor Taking China as an example, the environmental
targets of 11th five year plan (2006-2010) provides trmendous opportiunties Energy intensity 20% reduction SO2 emissions 10% reduction COD emission 10% reduction Water consumption of value added indistry 30% reduction Seweage treament rate reaching 70% Industrial solid wastes treatment rate higher than 60% The demand of environment is huge, especially
energy and GHGs reduction SO2 reduction
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Environmental problems
Global environmental problems Climate change Ozone depletion Biodiversity loss POPs Hazardous wastes Trans-boundary
transfer regulated by Basal convention
And other MEAs regulated global environmental problems
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Environmental problems
Demand of environmental goods and industry for global environment
Signed and new MEA treaty implementation brings opportunities Both importing and exporting opportunities of energy
saving and other GHGs control measures EGS for Post KY negotiation treaty and implementation, as described in IPCC AR4
CFC free EGS for ODS reduction EGS for POPs convention implementation for both
importing and exporting
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Redefining environmental goods and industry
Conventional Environmental Goods and Services
Indoor Environmental Goods and Services
Global Environmental Goods and Services
Indoor environment
Outdoor environment
Global
environment
Micro Macro
Scale of the environment
Regional environment
Local/national environment
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Redefining environmental goods and industry
Defining environmental industries for producing EGS based on the demand of environmental challenges at the whole spectrum The EGS for improving indoor environment The EGS for improving outdoor, local and
regional environment (conventional ones) The EGS for improving global environment
Dimension 2: Classifying environmental goods and investment policies
Encouraged products (Environmental goods) investment
Allowed products (Environmentally neutral) investment
Restricted products (Environmental bads) investment
Prohibited products (Environmental BADS) investment
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For goods Eco-label promotion
China’s eco-labels China’s environmental friendly product scheme Energy-saving scheme Organic food and green food scheme Eco-label mutual recognition
In green public procurement list from 2007 To be proposed in bilateral FTA negotiation in the future
Low carbon product standards being integrated into current China’s environmental friendly product standards and energy-saving standards
Dimension 2: Classifying environmental goods and investment policies
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For bads 5-25% exporting tariff on high energy intensive and pollution
intensive products started from January 1, 2007 High pollution and low value iron and steel Iron coke Cement
For BADs Prohibited goods list regulated by MEAs and national laws
Dimension 2: Classifying environmental goods and investment policies
Dimension 3: Regulating OFDI Why regulate? How regulate?
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Key players Companies
Multinational companies (MNCs), State-owned enterprises (SOEs) Small and medium enterprises (SMEs)
Investment institutions Policy banks/ Commercial banks/Other institutions
Regulators Business administration regulators Financial regulators Environmental regulators Social regulators
NGOs Local NGOs (NIMBY) & International NGOs
Media Public media Academic journals
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Dimension 3: Regulating OFDI
Key players Regulators Companies Banks NGOs Media
China
Host country elements
International elements
Key players at three layers
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Dimension 3: Regulating China’s OFDI
Classifying investment sectors Encouraged sectors Allowed sectors Restricted sectors Prohibited sectors
Policy tools Newly issued overseas investment guideline
jointly by MEP and MOFCOM Sustainable Investment guidelines Operational handbook
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Conclusions
Environment: Indoor outdoor, local, national Global
Trade Import Export
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Conclusions
Investment FDI O(F)DI
Policy Encouraged Allowed Discouraged Prohibited
Thank you very much! [email protected]